Merchandise That Has Been Sold and Is Returned to the Firm

question 157

Multiple Choice

Merchandise that has been sold and is returned to the firm by the customer is called

• A) a sales discount.
• B) an expense.
• C) a sales allowance.
• D) cost of goods sold.
• E) a sales return.

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Definitions:

Third-Party

An individual or group besides the two primarily involved in a contract or transaction.

Parol Evidence Rule

A legal principle that prevents parties from presenting extrinsic evidence that contradicts or adds to the written terms of a contract.

Exceptions

Specific conditions or circumstances that alter or nullify the general rule or application of a law.

Contractual Rights

The specific legal rights and obligations that are established by a contract between two or more parties.